Home
/
RELIGION & LIBERTY ONLINE
/
Trump and Clinton are wrong: free trade helps the poor
Trump and Clinton are wrong: free trade helps the poor
Jan 27, 2026 2:08 AM

Imagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. TheAmerican people would immediate reject such harmful economic policies,and politiciansknow they’d be rejectedfor makingsuch inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.

Purchasing power is the number of goods or services that can be purchased with a unit of currency. There are several methods politicians can use to reduce purchasing power, but one of the most subtle mon is to increase barriers to foreign trade. As Nita Ghei says,

The benefits of freer international trade accrue to consumers in theform of increased choice and lower prices. More imports mean more bang for the buck, and that effectively functions like an increase in pay. Consumers either buy imported goods directly, like the finished shirt from Bangladesh, or they can buy an American-made good that includes ponents. When American producers have access to cheaper imports, they can increase production, create jobs and offer goods at a lower price.

There is significant evidence that e Americans benefit substantially from imports, and higher trade barriers will impose a proportionately greater cost on the poor.

The poorest Americans tend to assume (mostly because they’ve been lied to by people that know better) that international trade hurts them. In fact, it is just the opposite, not only for those living in the U.S., but for the poor in almost every part of the world. As The Economist recently noted,

A study by Pablo Fajgelbaum of the University of California, Los Angeles, and Amit Khandelwal, of Columbia University, suggests that in an average country, people on high es would lose 28% of their purchasing power if borders were closed to trade. But the poorest 10% of consumers would lose 63% of their spending power, because they buy relatively more imported goods. The authors find a bias of trade in favour of poorer people in all 40 countries in their study, which included 13 developing countries.

If the lives of the poor are disproportionately improved by freer trade, then why do they so often oppose it? The main reason is because it’s much easier for them to see the negative effects of trade. If the factory you work at making widgets closes and the jobs move overseas, it’s easy to assume that the total economic effect is negative. What is more difficult to see is how many poor people are now able to buy widgets because they are being produced at a lower cost.

That is why protectionism has an innate appeal—it’s easy to see the effects—while free trade seems, well, foreign. Yet what many people don’t realize is that protectionism not only hurts the majority of consumers, it rarely helps the minority of workers it was intended to protect. As Ghei notes,

[P]rotectionist measures, like duties on steel, do little to halt the decline of that industry, which employs 140,000 people now, yet those duties inflict higher costs on steel-consuming industries, which employ over 12 million people.

Free trade is one of the few policies that almost all economists, whether on the left or right, agree is beneficial to the majority of the population. But economically ignorant politicians (see: Clinton and Trump) know that by championing protectionist policies (all while claiming that they are really for “free trade”) they can win the votes of people that don’t know better. That is why those of us who do know better have a duty to the poor to set the record straight. We can’t stop politicians from lying to them. But we can do our best to see that they discover the truth.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
A report from symposium
The first Acton Institute Summer Symposium was held last week, and John H. Armstrong, president of Reformation & Revival Ministries, gives a report. Here’s an excerpt: The group I am attending is titled, “Business, Faith and Ethics.” It is part of Acton’s Center for Entrepreneurial Stewardship. I have been in a room with twenty-five successful business entrepreneurs and one other mission related person, a leader in the Christian Reformed Church. This is not my normal venue so it has been...
Interesting discussion
There’s an interesting discussion going on over at Mirror of Justice about Catholic Social Teaching and the Preferential Option for the Poor: here, and here. ...
‘But not only did God make Sunday…’
“But not only did God make Sunday, He made Monday, too, and Tuesday, Wednesday…. So if God made all those days, he’s in all our days, not just the one you want to put him in.” Words of wisdom from Rev. Al Green. HT: GetReligion ...
It’s a wonderful retirement?
D. Eric Schansberg, an Acton adjunct scholar, takes a look at the Social Security system, and concludes that “policymakers should address the oppressive taxes that Social Security imposes on the working poor, its pathetic rate of return, and inequities in its payouts.” Read the full text here. ...
Green gospel of Biblical proportions
Courtesy the Evangelical Ecologist, “A group called ‘Operation Noah’ has re-written parts of Scripture to fit their climate change message,” and goes on pare two “versions” of Psalm 24. I suppose this is just the next logical progression; if Scripture can’t be twisted by some perverse hermeneutic to fit your agenda, just change the text! Author Ruth Jarman writes, “I hope it doesn’t look sacrilegious to re-write the word of God according to Ruth.” No matter if it actually is...
Africans on debt cancellation
During last week’s Symposium, munication staff had the opportunity to interview two African religious leaders on a variety of issues facing their continent, including the $40 billion in debt relief proposed to the G8 nations. The Rt. Rev. Bernard Njoroge is bishop of the diocese of Nairobi in the Episcopal Church of Africa, and also a member of the Constitution of Kenya Review Commission. Chanshi Chanda is chairman of the Institute of Freedom for the Study of Human Dignity in...
Gifts that keep on giving
Having been tagged by Kathryn at Suitable for Mixed Company, I duly submit my list within the guidelines of the following (and pledge not to repeat any placed on my initial list): Imagine that a local philanthropist is hosting an event for local high school students and has asked you to pick out five to ten books to hand out as door prizes. At least one book should be funny and at least one book should provide some history of...
Business and virtue in Batman begins
Can the new Batman movie provide moral lessons on business ethics and philanthropy? Ben Sikma writes that the film affirms “the value of traditional institutions more generally, such as the family, rule of law, and private ownership of the means of production.” Read the full text here. ...
Social justice math
This EducatioNation blog post contains the text of an incisive WSJ editorial, along with a sample curriculum that illustrates the idiocy outlined in the editorial. In “Ethnomathematics,” Diane Ravitch writes, “In the early 1990s, the National Council of Teachers of Mathematics issued standards that disparaged basic skills like addition, subtraction, multiplication and division, since all of these could be easily performed on a calculator.” She goes on to outline some characteristics of the “new, new math,” including “using mathematics as...
Causes of increasing tuition
Harvey Silverglate on the Foundation for Individual Rights in Education (FIRE) blog, The Torch, passes on one explanation for why college tuition costs have been increasing at double digit rates for years on end. He writes in part: Alan Charles Kors and I posited one answer to the seeming puzzle in our book The Shadow University. We noted the extraordinary increase in administrative staff on the student life side of colleges and universities. We attributed this in large measure to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved